Forex Trading Technical Analysis (2010/09/02) USD/JPY Double Bottom During Downtrend
(Please click on the forex chart thumbnail to enlarge)
9/02/2010 Forex Trading Technical Analysis (FXpath.com) – USD/JPY (a 4-hour chart of which is shown) as of Thursday (9/02/2010) has formed an approximate double-bottom low in the 83.60 price region. This occurs within the context of a strong and continuing downtrend extending from the early June high. This downtrend is currently still valid, despite the false break to the upside late last week. The key immediate upside resistance level to watch above the noted downtrend line continues to reside in the 85.00 price region. A breakout to the upside above 85.00 would place the current accelerated downtrend in jeopardy, potentially targeting further upside resistance around 86.40. In the event of a breakdown below the double-bottom low around 83.60, price action will have established a new 15-year low and confirmed a downtrend continuation, potentially targeting further downside in the 82.00 price region.
(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
James Chen, CTA, CMT (bio)
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